Mariel • July 22, 2026

What Has Changed?

The Boiler Upgrade Scheme has supported homeowners with the cost of installing low-carbon heating systems since it was introduced. Previously, eligible applicants could receive £7,500 towards the installation of a qualifying air source heat pump.


Following the latest government announcement, eligible households replacing oil or LPG heating systems can now receive:

  • Previous grant: £7,500
  • New grant: £9,000
  • Increase: £1,500 (20%)
  • Effective date: 21 July 2026 (for eligible applications submitted on or after this date)


The increased grant applies to eligible properties in England and Wales and is designed to encourage more homeowners using off-grid fossil fuel heating systems to make the switch to renewable heating.

Important Information

The new £9,000 Boiler Upgrade Scheme grant applies only to applications that are properly submitted on or after 21 July 2026. If a Boiler Upgrade Scheme voucher was issued before 21 July 2026, it will remain valid at the previous grant value of £7,500, even if the installation takes place after the new funding comes into effect. If you are unsure which grant amount applies to your installation, an MCS-certified installer can explain your eligibility and confirm which level of funding is available for your application.

What Is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is a government initiative that helps eligible homeowners and small non-domestic property owners reduce the upfront cost of installing low-carbon heating systems, including air source heat pumps. Rather than homeowners applying directly, the application is submitted by an MCS-certified installer on the property owner's behalf. Once approved, the grant is deducted from the installation cost, reducing the amount the homeowner pays.


The scheme has helped thousands of households transition away from traditional fossil fuel heating, making renewable heating technologies more affordable and accessible.

Why Has the Grant Increased?

Many homes across England and Wales still rely on oil or LPG heating, particularly those that are not connected to the gas network. These fuels can be more expensive to run and produce higher carbon emissions than renewable alternatives.


By increasing the available grant to £9,000, the government aims to encourage more eligible households to replace these heating systems with cleaner, more energy-efficient heat pumps. The additional funding helps reduce the initial installation cost, making the switch more financially achievable for homeowners.

Who Could Be Eligible?

The increased grant is intended for eligible homeowners replacing an existing oil or LPG heating system with a qualifying air source or ground source heat pump.


As with the existing Boiler Upgrade Scheme, installations must be completed by an MCS-certified installer, who will also manage the grant application. Eligibility depends on your existing heating system and whether your property meets the scheme's requirements. If you're unsure whether your home qualifies, speaking with an experienced installer is the best way to understand your options.

What This Means for Homeowners

A £1,500 increase in grant funding can make a significant difference to the upfront cost of installing a heat pump. Combined with the long-term benefits of improved energy efficiency, lower carbon emissions, and reduced reliance on fossil fuels, the updated Boiler Upgrade Scheme provides even greater support for homeowners looking to invest in renewable heating. If your property currently uses oil or LPG heating, now could be an ideal time to explore whether you qualify for the increased funding.